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CGassist.168
CGassist.168, Accountant
Category: Capital Gains and Losses
Satisfied Customers: 3444
Experience:  Tax Accountant
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I have rental property in Richmond, VA. I m 73 living in NC.

Customer Question

I have rental property in Richmond, VA. I m 73 living in NC. Do I have to pay tax. If so how do I reduce the amount. Selling this year $125,000
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  CGassist.168 replied 1 year ago.

Q1: Do I have to pay tax

A1: If you incur a gain from the sale of the property, yes, you will be required to pay capital gains tax.

Refer to page 4 of the document of the following link (Non-residents section):

http://www.tax.virginia.gov/sites/tax.virginia.gov/files/instructions/income-tax/2014/7632014instructions_1.pdf

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Q2: If so how do I reduce the amount.

A2: If you do incur a gain, you can reduce the amount of the gain by adding qualified improvement costs to the cost basis.

You will incur a gain if the cost basis, plus the cost of qualified improvements is less than the selling price.

Let me know if you require further assistance with this matter.

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